The Top Ten Functions of ISO System Certification

For a company, high investment, profits, and cash reserves mean higher employee wages, better working environments, and more attractive returns for investors. Happier employees produce better products, directly benefiting customers through improved living standards and increased leisure time. If a company can prove that its business is consistent, well-run, trustworthy, ethical, and even capable of making the world a better place, it will attract discerning customers and gain more business.

Auditing and evaluating according to ISO international standards and other regulations can positively influence a company's financial and subjective value. The ten ways standard certification adds value to a company are:

1. Demonstrating business operation methods and continuous improvement capabilities to attract more investors.

Any investor wants their investment to be safe. They hope the company they invest in will grow and succeed. For investors, the proof provided by ISO standard certification is a good indicator that your company is responsible, professional, and continuously seeking ways to improve, making your company a better investment.

2. Formal system certification helps you reduce waste, lower costs, and increase cash flow.

In the manufacturing process, if employees do not have procedures to follow, the risk of errors increases, leading to wasted time and materials. Additionally, production may not be operating at optimal levels, resulting in inconsistent product quality. If your company can consistently manufacture products, you can better manage your resources and reduce costly returns or rework.

3. ISO standard certification provides opportunities to increase revenue.

No matter how excellent your products or services are, if your company is not ISO certified, many organizations will not cooperate with you. Without certification, many blue-chip companies and government departments will essentially be out of reach. Certification means you can bid on larger projects, which could be the difference between a good fiscal year and an outstanding one.

4. If you lack market recognition, ISO certification provides credibility capital.

Emerging companies or mature companies entering new regional markets have no reputation in the market. Your potential customers know nothing about you, and you face competitors with established brand recognition. ISO certification helps build trust, meaning potential customers are more likely to give you a chance because you are clearly operating professionally. The company has formal processes and is willing to accept independent third-party audits. This proves your character and helps build a positive, progressive brand image.

5. Sharing core values increases cooperation opportunities.

Your customers likely want transactions with you to be ethical and responsible. If they feel you share their core values, they are more likely to consider working with you. More customers mean more revenue. The media often reports on companies that appear ethical but use unscrupulous means to win contracts. Many people are skeptical of appearances, which is understandable. Hiring ethical employees or conducting environmental audits helps a company implement its values. More importantly, it aligns with customers' expected values.

6. Support for product compliance.

We all know compliance takes time and money. But with ISO9001 certification, a company can not only meet many EU directive requirements, have factory production control of its products (documented manufacturing processes and operational policies), but also use its ISO9001 certification to apply for approval of all products. ISO9001 certification helps increase the intrinsic value of products because it fundamentally supports ongoing compliance.

7. Increase customer trust in products, services, and operators.

Hiring independent third-party audit organizations to benchmark against internationally recognized quality, health and safety, ethical, or environmental standards shows you are willing to have your business audited. Customers want their suppliers to be transparent and accountable for their business models, without hidden operations in important business aspects. Trust leads to loyalty, and loyalty leads to long-term customers.

8. An effective and regularly audited quality management system can cultivate more professional employees.

Providing information, processes, and administrative support for positions establishes a framework that helps employees understand their place in the organization and how to work correctly. Knowing that their responsible processes will be audited encourages employees to be more diligent and detail-oriented.

9. ISO standard certification brings market respect.

Certification indicates that the organization has undergone a truly independent assessment. Some audit bodies are recognized by national authorities, such as the UK's United Kingdom Accreditation Service; others are not. Non-accredited bodies often provide services to help companies meet certain standards, sometimes even helping build processes. Accredited certification bodies are not allowed to provide consulting in this way. They must measure a company using ISO standards to ensure absolute fairness. Only this fairness can bring trust in the market.

10. ISO standard certification drives continuous improvement of your business.

Whether you are benchmarking your business against industry quality or occupational health and safety best practices, or proving you provide and respect a living wage for workers in different regions to meet customer expectations, the motivation of the ISO certification process is to make your future better than the present. The starting point does not matter as long as you are willing to commit to improving your business, because improvement increases organizational wealth and value.